EU proposes changes to vehicle type approval framework

27 January 2016

The European Commission released a legislative proposal that would bring a number of changes to the EU vehicle type approval framework. The proposal, issued in the aftermath of the Volkswagen diesel emission scandal, attempts to strengthen the EU oversight over the emission type approval and in-use compliance system.

Under current rules, while the EU sets the legal framework, national authorities are solely and fully responsible for vehicle emission certification and the enforcement of emission regulations. The responsibility to remedy wrongdoings lies with the Member State in which the type approval has been granted—neither other Member States nor the Commission can initiate a recall. The proposal would make vehicle testing more independent and increase surveillance of cars already in circulation, with a strengthened European oversight. Today's proposal for a Regulation on the approval and market surveillance of motor vehicles complements efforts to introduce more robust emissions testing (Real Driving Emissions testing), said the Commission.

The proposal aims to achieve three objectives:

Reinforce the independence and quality of type approval testing: The majority of Member States designate technical services, which are paid directly by car manufacturers, for the testing and inspection of the vehicle’s compliance with EU type approval requirements. The Commission proposes to modify the remuneration system to avoid financial links between technical services and manufacturers, which could lead to conflicts of interest and compromise the independence of testing.

Introduce a market surveillance system to control the conformity of cars already in circulation: While the current rules deal mainly with ex ante controls, in the future Member States and the Commission would carry out spot-checks on vehicles already on the market. All Member States should be able to take safeguard measures against non-compliant vehicles on their territory without waiting for the authority that issued the type approval to take action.

Reinforce the type approval system with greater European oversight: The Commission would have the power to suspend, restrict or withdraw the designation of technical services that are underperforming and too lax in applying the rules. In the future, the Commission will be also able to carry out ex-post verification testing, through its Joint Research Centre. In case of noncompliance, the Commission would have the authority to initiate recalls and to impose financial penalties on manufacturers. The Commission would also chair an Enforcement Forum which will develop common compliance verification strategies with Member States and organize joint audits of technical services and peer reviews of type-approval authorities.

Under the proposal, the manufacturer will have to provide access to the car’s software protocols. This measure, which complements the Real Driving Emissions package, includes an obligation for manufacturers to disclose their emissions reduction strategy, as is the case in the United States.

The European Union has some of the world’s strongest and most protective vehicle emission limits, but the enforcement mechanisms have been often considered weak and inefficient. In jurisdictions with more effective enforcement of emission regulations—such as the United States and California—emission related vehicle recalls are commonly issued every year. In the European Union countries, vehicles are normally never recalled due to emission compliance issues.

The lack of EU-level enforcement is one of the reasons that may allow Volkswagen to walk away from the emission scandal relatively unharmed. It seems ironic that most of the fines and penalties could be coming from the United States—a market where only about 5% of the affected VW vehicles were sold.

In the next step, the draft Regulation will be sent to the European Parliament and Council for adoption. Once adopted, it will repeal and replace Directive 2007/46/EC (the ‘Framework Directive’).